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Asia faces mixed start for equities, US dollar flat

A woman walks past electronic board showing stock prices and Japanese Yen’s exchange rate outside a brokerage at a business district in Tokyo January 23, 2017. — Reuters pic

TOKYO, Oct 10 — Asian stocks were poised for a mixed start to today’s session as Japan and South Korea reopen and Treasuries trading recommences after holidays, when a shock drop in Turkey’s lira was the standout move in global markets.

A bitty start to the week with many market closures saw the S&P 500 Index slip in light trading yesterday as investors assessed political developments in Washington before the start of earnings season and the release of minutes from the most recent Federal Reserve meeting. Turkey’s lira held on to losses amid tensions with the US.

In Washington, a top Republican senator sparred verbally with President Donald Trump, raising some concern that planned tax reform may be stalled. Global stocks are trading near a record high and Treasury yields have climbed off the September lows as traders bet the Fed will lift rates in December.

Asian equities have beaten their US counterparts this year, and still trade at the biggest discount to American shares in 15 years.

Spanish assets will be in focus again today. Catalan President Carles Puigdemont will make a declaration of gradual independence when he addresses his parliament today, Efe reported, without citing anyone.

The announcement will include a constituent process without a regional assembly vote and will call on negotiations with Madrid. Terminal subscribers can read more in our Markets Live blog.

What’s coming up this week

Japan balance of payments data is due today, followed by a read on Australian business confidence. Minutes from the most recent Federal Reserve meeting are due tomorrow. The International Monetary Fund and World Bank hold their annual fall meetings this week.

Earnings season begins for major US banks, led by JPMorgan Chase & Co, Citigroup Inc, Bank of America Corp and Wells Fargo & Co. Also reporting will be BlackRock Inc, Domino’s Pizza Inc, Samsung Electronics Co, German container company Gerresheimer AG, UK grocery wholesaler Booker Group Plc, and Sky Plc.

The active Atlantic hurricane season will probably figure prominently in US data on retail sales and consumer prices.

Here are the main moves in markets — stocks

Futures on the S&P 500 Index were little changed as of 7am in Tokyo. The underlying gauge fell 0.2 per cent for its first back-to-back losses since September. The MSCI Emerging Market Index declined 0.2 per cent yesterday.

West Texas Intermediate crude was steady. It rose 0.6 per cent yesterday to US$49.58 (RM209.97) per barrel. Gold futures was little changed at US$1,283.55 an ounce after advancing 0.6 per cent in the previous session. — Bloomberg